In this article, Barry Horwitz offers valuable insight into pricing.  Pricing. It’s one of the most important elements of any business value proposition. And yet, it’s a topic that many struggle with. That’s because setting the right price is about much more than simply setting price higher than costs or mimicking the actions of competitors. Some things to consider… Pricing sends signals. While economists have long developed theories based on the assumption that we all act as rational beings (i.e.,…

Ian Tidswell provides insight into the psychology of pricing. Why are we often less than completely rational? Delving into psychology, one can think of the brain as having two types of circuits: system 1 and system 2 (Kahneman) or elephant and rider (Haidt). The elephant (system 1) acts quickly and seemingly automatically, following a set of pre-programmed rules. It’s in control when you react to seeing a family member, catch a ball thrown at you, answer simple questions like 2+2…

Robbie Kellman Baxter takes a look forward at the future of subscription-based business and the application of a popular pricing tactic. Subscriptions are everywhere. Big companies, small companies, public, private, venture-backed, bootstrapped, and across virtually every industry. And many are starting to complain of “subscription fatigue”. They might feel that the subscription pricing isn’t justified by the offer (a Product/Market Fit problem). Or maybe they feel bad about fact that they aren’t taking advantage of all the great value their…

  In this episode of Subscription Stories, Robbie Kellman Baxter interviews Electronic Arts’ Mike Blank about bringing subscription to the world of gaming. They discuss the challenges of subscriptions in the gaming industry, how to encourage consumers to discover new content within the subscription, and how EA offers multiple consumer models to support their “player first” promise. ‘EA has historically built their model around these awesome specific franchises, each with their own fan base: Madden, Battlefield, The Sims. So why…

  This article on Sean McCoy’s company blog explains why long-term forces and trends are forcing many heavy industries to reshape value chains, change economics, and disrupt business models. Digital technologies are making it possible for firms to expand their offering and meet new customer needs and serve new customers. For a manufacturer or heavy industrial company, this means companies that were not your competitor yesterday are your competitor today and tomorrow. The executives at GM and Ford lose many…